How green cloud computing can enhance business sustainability goals
Cloud computing plays a significant role in digital transformation and non-financial reporting, specifically regarding environmental, social, and governance (ESG) goals. With digital transformation, businesses can integrate technology throughout their value chain to achieve smarter, faster, and more desirable outcomes with a broader purpose beyond immediate commercial success. During the global pandemic, businesses stayed connected and thrived despite physical limitations with technology solutions supported by the cloud, high-speed networks, and smart devices. This article will explore how cloud computing can help businesses achieve their ESG targets.
A factor in the selection of vendors
In recent years, customers have become more interested in the ESG commitments of vendors when selecting computing solutions. The information technology industry is shifting towards “New IT” architecture, including edge computing, cloud computing, high-speed networks, and artificial intelligence. These new technologies enable data to be transmitted, stored, processed, and analysed from anywhere, making data security, user privacy, and equitable access to technology benefits critical considerations. As a result, companies that prioritise ESG commitments are more likely to be successful in the ICT industry. By prioritising environmental sustainability, social responsibility, and good governance practices, companies can demonstrate their commitment to creating value for stakeholders.
Trust and credibility
When businesses prioritise ESG initiatives, they often gain the trust and credibility of their customers, investors, and stakeholders. These stakeholders expect businesses to act responsibly and positively impact society and the environment. By adopting cloud computing to promote environmental sustainability and human well-being, businesses can demonstrate their commitment to these values and gain the trust of their stakeholders. Through cloud-based tools, businesses can monitor their supply chain, reduce their carbon footprint, and improve working conditions for their employees and suppliers. This benefits the environment and society and helps build a strong brand image, increase customer loyalty, and attract socially responsible investors. By demonstrating their ESG efforts, businesses can create long-term value for their stakeholders while contributing to a more sustainable and equitable world.
Several businesses have adopted cloud computing and achieved their ESG goals. By adopting cloud-based technology, they have been able to track their energy use in their stores and reduce their carbon footprint. Retailers have also improved their supply chain by using cloud-based tools to track the movement of products and reduce waste.
By adopting cloud-based tools to track the movement of products in their supply chain, retailers have increased transparency and traceability, which has helped improve working conditions for workers. These tools allow retailers to monitor their suppliers’ compliance with social and environmental standards and identify potential supply chain issues. This transparency and traceability also help to reduce the risk of human rights violations, child labour and forced labour in their supply chain. By working with suppliers to address any issues, retailers can improve working conditions, promote fair labour practices, and build trust with their customers, who are increasingly concerned about the social and environmental impact of the products they buy.
In conclusion, cloud computing and other technology integrations can enhance ESG initiatives by leveraging technology capabilities. This integration can drive tangible results in promoting environmental sustainability, human well-being, and achieving SDGs. Businesses should align their digital transformation efforts with ESG goals to create long-term value for their stakeholders and contribute to a more sustainable future.